Kibo Energy has completed the acquisition of a 60% stake in Mast Energy Developments (MED), a company involved in the development and operation of flexible power plants to service the Reserve Power generation market.
MED’s business strategy is to acquire and develop a portfolio of small-scale power generation assets. Various “shovel ready” sites have already been identified in the UK, capable of sustaining gas fired power generators and ancillary structures from 20MW upwards.
They have full planning permission and permitting in place, long term lease agreements, grid & gas connection offers and positive feasibility studies, pertaining to technical and commercial viability. The full summary terms of the Acquisition are described in the RNS announcement dated 15 August 2018.
As part of the Acquisition consideration, the Company will issue 5,714,286 new ordinary shares at a deemed price of 5.25 pence each in the Company (Consideration Shares) to the existing MED shareholders (the Sellers). The Application has been made for the Consideration Shares, which will rank pari passu with the existing ordinary shares in the Company, to be admitted to trading on the AIM market of the London Stock Exchange (“Admission”). It is expected that Admission will occur at 8:00 am on or around 19 October 2018.
Following Admission, the Company will have 640,031,069 Ordinary Shares in issue, of which none are held in Treasury. Therefore, the total number of Ordinary Shares in the Company with voting rights will be 640,031,069. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules.
Louis Coetzee, CEO of Kibo Energy, said: “This acquisition provides Kibo with the realistic possibility of near-term revenue generating assets and enables us to combine our knowledge of the power generation market both in mature and emerging markets. There is a distinct short-term revenue generating potential in the UK, which is positive for Kibo and importantly all early stage royalties payable to the sellers will be reinvested in Kibo ordinary equity.”
Source: Company Press Release